Premier Jennifer Smith introduced The Prohibition of Gaming Machines Act by saying that it was one of the early problems the government had to grapple with.

"Members of the public were expressing genuine concern,'' she said, adding that gaming machines were becoming a more pervasive social ill.

"As many as 12 people are affected when somebody develops a gambling problem,'' she said.

But despite the harmful effects of gambling, some forms of it have been "part of Bermuda's social and cultural traditions for many years. Reconciling these two disparate views has never been an easy task''. She explained that a policy towards gaming machines was developed in consultation with gaming operators.

And the operators were informed soon after that June 30, 2004 would be the cut off date for complete prohibition of gaming machines on the island.

"Determining a fair cut-off date was not an easy task,'' said the Premier.

Government had to balance the needs of the gaming operators to recoup their investments and sporting clubs which depended on the revenue had to find an alternative source of income, she said.

Gaming machines are "not a part of Bermuda's cultural heritage'', she said.

"We believe we have struck the right balance. We recognise that those who are determined to gamble will always find a way to do so. There's a limit to what Government can do. But that does not mean we should not do something.'' Opposition Leader Pamela Gordon responded immediately after the Premier's speech.

The 1999 law prohibiting the importation of gaming machines "resulted in legalising existing ones'', Ms Gordon said.

She pointed to a poll done which showed that there "was no overwhelming support one way or the other'' on whether existing machines should be removed or not.

"Government should have consulted the general public,'' she said.

She argued further that it was incorrect to say the operators had a right to recoup their investment because "they didn't have any in the first instance.

We put the cart before the horse from the very beginning.'' "If the Government was so serious..why not make a decision to do it now? There can't be that significant a concern if they are going to be given another three years.'' She repeated her call for wider consultation with the people.

She then accused the Government of having a "greater concern for the operators than for the community at large''. And she suggested banning the machines for locals but making them legal for visitors.

"It would have been a win-win,'' she said. "People who are addicted today are going to be more addicted three years from now.'' She said some people were resorting to stealing from their employers, after using up all their rent money to satisfy their addiction.

Tourists can gamble on the cruise ships and games like Crown and Anchor and Bingo are very much a part of the social fabric, she said.

UBP MP Gary Pitman then said that government had effectively created a "monopoly'' for existing operators when it banned the importation of the machines.

"I find it difficult to understand why this PLP government has chosen to extend this monopoly until 2004. Clearly after the term of this government has expired. Even more difficult to understand is why they are not taxed,'' he said.

PLP MP Rev. Larry Lowe defended the Government against accusations of not being serious about tackling the issue.

"As long as I have been part of the Government and even before the PLP has taken a stand against gambling,'' he said.

We are trying to draw the line and it starts here with these gambling machines. I don't see any hypocrisy. I see a serious attempt to make a start.

From a moral point of view we are trying to say to our young people there is a better way.

"Gambling has always rubbed this community the wrong way. It also had a tendency of affecting the offerings in the church.'' Shadow Finance Minister Grant Gibbons rose to disagree that the government side was "holding the line'' with the legislation.

"`Extending the line' would be a better metaphor,'' said Mr. Gibbons.

"The 1999 legislation for all practical purposes legalised the machines.'' He agreed that the Government had inherited a "a gray area''.

"The Premier gave a fairly cogent argument as to the issues relating to gambling,'' he said.

"While some may enjoy a flutter..some may have a good deal of control, it should be very clear that a number of people become addicted to gambling and it has tremendous social impact.'' He went on to attack the premise that the operators needed time to recoup their investment.

"I have heard that these gambling machines recoup their investments within three months,'' he said.

Dr. Gibbons added that his research indicated there were "hundreds of companies selling used or new gambling machines'.' And on the Internet auction site E-bay, machines can be had for as low as $200.

"There are a lot of options for the operators,'' he said.

"It would be very simple to sell the machines. Government could pay for the containers to ship them to the US.'' The Paget East MP also attacked the suggestion that clubs should be given an opportunity to find replacement money earners.

"What if one of these clubs were promoting prostitution or pornographic movies..? It simply doesn't make sense,'' he asked.

"You can't have your cake and eat it too. It's like the old definition of a politician -- someone sitting on the fence having both ears on the ground.'' Dr. Gibbons added: "If you're going to allow it until 2004, wouldn't it make sense to allow others to bring it in as well ?'' PLP MP Renee Webb agreed there was some hypocrisy in the way the bill was being proposed. To which some UBP members responded by heckling "send it back.'' But Ms Webb continued. "I think what is clear is that this country is very hypocritical.Yes the church is opposed to it but we do allow it in the bingo halls,'' she said.

"This country sits on the fence period. What does it mean when you and I can go anywhere and buy a lottery ticket ?'' "You can gamble in Bermuda in all sorts of jurisdictions. As a people as a country we are being very hypocritical on this issue.'' She said that despite the inherent hypocrisy she supported the legislation.

"I support the Minister 100 percent,'' said Michael Dunkley UBP MP for Devonshire South .

"The last I heard the PLP was still the Government.. Why are they bringing piecemeal legislation to this House..And the minister is complaining about it?'' Mr. Dunkley: "I fail to see how a government can bring such a haphazard legislation without consulting the people of Bermuda.'' He said he was well aware that a community-wide discussion would be like opening up a powder keg "but we owe it to the people of Bermuda. I would like to ask the Premier to have a bit more consideration for the people of Bermuda.'' He then accused the Government of seeking political gain with the legislation's timeframe.

"This is just a strategy to gain a little political positive vibe in the community. We can't sit on the fence here. Let's discuss with the community how we are going to deal with bingo, how we are going to deal with Crown and Anchor.'' Mr. Dunkley likened the bill to "child's play''.

Then he said that the 2004 deadline was "passing the buck to someone else'.' Wayne Perinchief MP defended the legislation from charges that it was "piecemeal'', saying laws evolve.

"We are enacting legislation in a prudent way. In this instance we think it's prudent to do that.'' He said : "Generally speaking I can't remember anyone being arrested for keeping a gambling house. What we have is a very nebulous situation.'' He said the Government was keeping open the possibility of a position where "we want to protect our populace but where we still want to derive the benefits''.

He agreed that gambling was "pernicious'' but said that its prevalence meant that one had to be pragmatic.

"Gambling is an industry and you can't just cut a part of your economy and allow people to go unemployed.'' He too called for the debate to be broadened. "I believe all of us need to participate in a wholesome debate rather than just trying to score points against each other.'' The government had taken a"liberal'' position, said Mr. Perinchief. "We should applaud this government for being liberal to the extent that we have considered the people who brought the machines to this country.'' The former government "vacillated'' on the issue, he said. "We've now found out how difficult it is to deal with this problem.'' PLP backbencher Dale Butler said that he had very little personal experience with gambling, was unlucky anyway and had little money. And he did not even know what the machines look like.

"I don't understand people's fascination with sitting down in front of a machine that is sucking up your money and it might give you some return?'' However he said he was aware in one instance at least how much money it brought to the clubs.

He expressed surprise that no one had held a public meeting on the issue.

"I have received more information on this issue than on any other issue,'' he said. "So there's obviously some interest in the constituency.'' Mr. Butler also remarked on Bermuda's hypocrisy. "In Bermuda we have a little taste of sin around the country.'' "I have to say is it going to be in the best interests of Bermuda given what is going on elsewhere? '' He said that in the US over $20 billion is generated annually by casino gambling, And the corresponding figure in the UK is $10 billion.

He said the fine for violating the law was not high enough.

PLP MP Stanley Morton pointed out the Anglican Cathedral held a lottery, the "Roofle'' to raise money for roof repairs.

"Everyone has indulged in a game of chance. If the churches want to control their collections, they may question those funds that are being given,'' he said.

"Before a person gives a collection, they may have to declare it is clean money that they earned.'' He said gambling was not as serious a social problem as drugs and said there were so many games of chance in Bermuda, including investing.

Shadow Legislative Affairs Minister John Barritt said he agreed with Telecommunications Minister Renee Webb that there was "hypocrisy'' about gambling in Bermuda, where people turn a blind eye to bingo and the pools.

He said they were "pernicious machines,'' although other forms of gambling such as Crown and Anchor fitted into the Island's "cultural mosaic''.

"What is the image and example that we wish to set? Bermuda can't be all things to all people. We are about setting an image and a quality that sets us apart from other places.

"Are one arm bandits the only way we can get people into our bars and sports clubs? No.'' He accepted the machines arrived under the UBP and the then Government was in a dilemma over whether they were illegal.

He said he had never played them but knew they were "rip offs''. They are calibrated so that before they pay out $10,000, they take in $50,000. People are being preyed upon, he said.

"If the argument was that they were brought in for a period of time, that expectation has been more than met. If we could find out how much they make, it would be shame on us for allowing that argument.'' Opposition Whip Cole Simons said the machines were regarded as sinful and should be subject to a sin tax.

"We have a machine that is pulling our community to pieces, yet its not taxed at all. If the Premier insists on having this legislation, maybe she should visit the possibility of a licensing fee that would be a deterrent,'' he said.

Premier Jennifer Smith said Government had made it unlawful to import the machines and their parts, now it was moving to outlaw them.

She said the variety of views expressed on the issue reflected the diversity of opinion in the community.

UBP MP Gary Pitman moved an amendment to have the machines banned by January 1 next year rather than 1 July 2004.

"They do social damage and should be rid of in a period of six months,'' he said.

Shadow Finance Minister Dr Grant Gibbons described the 2004 cut off date as "very arbitrary''.

"Government should have got some sense of the payback period. I've heard as little as three months is the payback period. This number has been arbitrarily plucked out of the blue with no economic argument.'' Telecommunications Minister Renee Webb said the UBP amendment was an example of "politicians playing games. What's the difference between the two dates?'' "If you are based on principle, move a motion to shut them down today. Where is your date coming from?.

"This Government has taken a decision that they were not prepared to take.

Stop playing games, you are either against it or you are not.'' The UBP amendment was defeated by 16 votes to nine following a name call requested by the Premier.